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The London School of Economics and Political Science The European Community’s Opening to the People’s Republic of China, 1969-1979: Internal Decision-Making on External Relations Marie Julie Chenard A thesis submitted to Department of International History for the degree of Doctor of Philosophy, London, September 2012 Declaration I certify that the thesis I have presented for examination for the Phil/PhD degree of the London School of Economics and Political Science is solely my own work other than where I have clearly indicated that it is the work of others (in which case the extent of any work carried out jointly by me and any other person is clearly identified in it). The copyright of this thesis rests with the author. Quotation from it is permitted, provided that full acknowledgement is made. This thesis may not be reproduced without the prior written consent of the author. I warrant that this authorization does not, to the best of my belief, infringe the rights of any third party. Abstract This thesis analyses the decision-making within the European Community on opening to the People’s Republic of China between 1969 and 1979. The three main research themes, which this thesis will make a contribution to, are the EC’s decision-making in foreign policy, European integration in the 1970s, and the intersection of European integration and the Cold War. Neither the historiography of the Cold War nor of European integration have dealt with the EC-PRC relationship. This research addresses that deficiency. This is the first detailed, systematic historical study of the origins of the Community’s response to China that bases on archival sources released according to the 30-year rule. The study takes a Community-centred perspective, focusing on how the interests of the EC member states, those of the EC intergovernmental and supranational actors came together in Brussels, Strasbourg and Luxembourg to shape the EC’s response to the PRC. It is based on extensive multi-archival and multinational research, including records of the Community institutions, the French, British and German governments, personal papers, and interviews. The thesis argues that the Commission was the principal architect and motor behind the EC’s opening to China. Sir Christopher Soames, the first British vice-president and commissioner for external relations, was primarily responsible for establishing official relations. Personal beliefs and ambitions were at the root of his decision-making. Geopolitics were key. However the principal factor behind his and the Commission’s subsequent decisions was inter-institutional jockeying for power. The main implications of the opening were a furthering and deepening of European integration, and an acceleration of European détente and détente in Europe. This thesis therefore shows that the wrangle for competencies within the EC institutional system intertwined with broader trends of history, the end of the PRC’s isolation from international affairs and détente. Table of Contents Acknowledgements ...................................................................... 7 Acronyms and abbreviations ........................................................ 9 Introduction .......................................................................... 13 1.1 Scope and approach ...............................................................16 1.2 Literature review ................................................................... 18 1.3 Sources .................................................................................. 39 1.4 Structure ................................................................................ 43 Chapter 2 Beginnings and a public pledge (December 1969 – December 1973) ....................... 47 2.1 Institutionalising trade ......................................................... 49 2.2 First political coordination.................................................... 56 2.3 Fresh impetus due to Britain joining .................................... 60 2.4 Growing political contacts do not parallel economic ones ........................................................................................ 69 2.5 New leverage: the Sino-Soviet competition .......................... 75 2.6 Towards a concerted foreign policy: the Declaration of European Identity ................................................................. 82 Chapter 3 Coup de théâtre (January 1974 – May 1975) .......... 92 3.1 The member states’ laissez-faire opens wider the window of opportunity .......................................................... 95 3.2 Trade prospects helped, but did not determine the outcome ................................................................................ 101 3.3 Beliefs, personal ambitions, and politics ............................ 107 Chapter 4 A difficult follow-up (May 1975 – January 1977) ................................... 121 4.1 The EP’s critical acclaim and the European Council’s support..................................................................................123 4.2 The Commission pushes ahead with trade talks ................. 131 4.3 Stagnation due to Chinese domestic turmoil ...................... 144 4.4 Attempts of more political presence: the Tindemans Report, emergency relief and messages of condolence ....... 151 4.5 Soviet alarm and the reactivation of EC-COMECON talks ...................................................................................... 159 Chapter 5 A multi-level deal (February 1977 – June 1978) ................................ 167 5.1 Swift resumption of trade talks which the Sino-Soviet rivalry spurs on .................................................................... 169 5.2 Off to Beijing for the second time: the Commission’s skills ...................................................................................... 175 5.3 The final negotiation phase: playing the Soviet card.......... 182 5.4 Signature and ratification: the many dimensions of the trade agreement .................................................................. 189 Chapter 6 Towards more substance (June 1978 – January 1980) ................................ 199 6.1 Practising diplomacy: the Commission’s and the EP’s visits to Beijing .................................................................... 201 6.2 The EC’s unilateral trade liberalisation .............................. 209 6.3 A delicate task: negotiating the textile agreement .............. 219 Conclusion A new multi-level diplomacy ............................... 232 7.1 Boosting the Community’s foreign policy activity .............. 233 7.2 European integration and the 1970s ................................... 241 7.3 European integration and the Cold War ............................. 242 Bibliography ........................................................................ 247 Appendices ........................................................................ 278 Table of Tables Table 2-1: Direction of trade of the Six for 1965 and 1971 in million US $ ............................................................................... 55 Table 2-2: Ranking of the first trading partners with the PRC in total trading volume in 1973 ...................................................... 73 Table 4-1: Distribution of EC exports to China in 1974 and 1975 ............ 139 Table 4-2: Distribution of EC imports from China in 1974 and 1975 .......................................................................................... 139 Table 4-3: Variation in trade in 1975 compared to 1974 between the EC and China for Germany, France and Britain ............... 140 Table 4-4: Direction of trade of the Nine for 1974 and 1975 in million US $ .............................................................................. 141 Table 4-5: Distribution of EC exports to China in 1975 and 1976 ............ 148 Table 4-6: Distribution of EC imports to China in 1975 and 1976 ........... 149 Table 4-7: Variation in trade in 1975 compared to 1976 between the EC and China for Germany, France and Britain ............... 149 Table 4-8: Direction of trade of the Nine for 1975 and 1976 in million US $ ............................................................................. 150 Table 6-1: Direction of trade of the Nine for 1976 to 1979 in million US $ .............................................................................. 211 Acknowledgements It would not have been possible to write this doctoral thesis without the help and support of the kind people around me, to only some of whom it is possible to give particular mention here. First and foremost I offer my sincerest gratitude to my supervisors, Dr N. Piers Ludlow and Prof. O. Arne Westad, who have supported me throughout my thesis with their knowledge and patience whilst allowing me the room to work in my own way. I attribute the level of thesis degree to their encouragement and effort, without whom this thesis, would not have been completed or written. One simply could not wish for a better supervisor team. I would like to acknowledge the financial, academic and technical support of the LSE and its staff, particularly in the award of the Departmental Research Studentships that provided the necessary financial support for this work. In this respect I also wish to thank Udo van Meeteren for his generous financial support. This dissertation would not have been possible unless archivists and librarians had helped me in locating material across Europe. A particular thanks goes to Joceline Collonval,